Connect with us


Dow Jones Chart Analysis: Key Support Holds as Debt Ceiling Deal Boosts Sentiment



Dow Jones Chart Analysis Key Support Holds as Debt Ceiling Deal Boosts Sentiment

(CTN News) – Dow Jones has bounced off the key 32684 support on the daily chart below after positive debt ceiling news lifted sentiment last Friday. Sure enough, Biden and McCarthy announced a deal yesterday after the market positioned for it over the weekend.

A positive gap opened in electronic trading hours that closed soon after. Now we might see a classic “sell the fact” trade where the market trades into an expected outcome and reverses when it happens. The sellers have been relying on the red 21 periods moving average to position for more downside.

Dow Jones Technical Analysis

The chart below shows that the Dow Jones bounced from the 32684 support as expected last Friday. Long candlestick wicks on the support were a sign of high buying pressure. Earlier today, the rally broke above the 33000 resistance and hit the 33300 resistance.

We’ll likely see a pullback from here and another push into 33800 if the “sell the fact” trade fails. Conversely, if we get the “sell the fact” scenario, the Dow Jones should fall from here back to 32684 and maybe even further.

The 1-hour chart below shows that the buyers will have a confluence of the 38.2% Fibonacci retracement level and the red 21-period moving average near the 33000 resistance turned support.

Just below it is a key buying zone with limited risk. On the other hand, the sellers will want the Dow Jones to break below that zone to pile in for a bigger drop.

SEE ALSO: Dow Jones rally Over 600 Points, Registers Fourth Straight Week Of Gains

Continue Reading

CTN News App

CTN News App

Recent News


compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs